Should You Owe?

Should You Owe?

You owe?

What for?

Can be paid off on time?

The first question I’m sure almost all answer ever. How about you? For QUESTIONS second answer may be more varied. Nothing for home renovation, DP vehicle, or just buy the gadget. If the third, in the beginning before borrowing, partly we definitely could answer.

During this time some literature debt divide into two types, namely bad debt and good debt. Surely you’ve heard of it. The former is more often we know into consumer debt, debt that is used for purposes that are consumptive. This time we will focus on the types of consumer debt.

Consumer debt should be avoided because it can erode the wealth you have. It sounds extreme, but directly or indirectly it contributes less well. To buy goods that are consumptive eg, for pleasure, we suggest you pay not by way of debt. If using a credit card is not advisable to pay the minimum payment, PAID required prior to maturity.

Now let you check the debt held now is consumer debt or not if you need help.

The first feature, if we use that debt to buy goods worth down. The latest type of gadget you have to wait a long time will not go down in value. Because there will definitely be another newer type. Clothes and shoes, especially women, are also goods whose value will go down and fashion it is faster than the rotation of the gadget.

The second feature, which tend to have higher interest. You know that the interest on debt is the second highest after the moneylenders interest is interest on credit cards. Want SBI down as well, credit card interest will never go down! Interest credit card spending an average current of 3% -4% per month. If annualized be 36% -48%. Well, try to compare with the interest savings that only 2-3% and deposits is now only 6% per year, the difference is very very far away.

My experience with people who do not realize this is very sad indeed. Having money in savings deposits actually worth enough to pay off the credit card debt, but he did not. In fact, credit card debt eventually exceeds the savings deposits.

A further feature, consumer debt does not require a guarantee (collateral). Yes, to be able to have a debt we only need to fill in a form that is standard and wait for verification, complete, it can be owed money from it, without the need to ensure anything. The form can be through a credit card or a loan without collateral. But do not be fooled by the easy process of getting it. An expert once said that if you borrow a loan without collateral, it means that you ensure yourself. Have been inconceivable not, if you (sorry) died and still have credit card debt, do not ever expect the bank will whiten the debt. Heirs we must bear 🙁

I had an experience while working in a bank, a credit card holder dies. Concerned still have a mortgage in the form of installment credit card purchase electronic goods. Heir comes intends to take care of and solve them. However, after being confirmed by the authorities in the bank, the heirs must bear the remainder of the mortgage, and if you want to pay off (no menyicil again), will be charged redemption prior to maturity.

Okay lanjuut, last trait is an asset purchased with the debt of this type can not generate income equal to or higher than the cost of debt repayments (principal + interest). If for example, we buy houses for our leased, and the rent ≥ our mortgage loan, then this is not including consumer debt, but debt productive. Just as with cars. When we buy a car used for the operation of the business, and the revenues from these businesses contribute more than the car loan installments, the debt also includes debt productive.